Antigua and Barbuda Sales Tax 2006

AN ACT to establish an investment authority, to promote invest-ment opportunities, introduce a system of registration of busi-ness enterprises that may benefit from lawful incentives andconcessions, to assist investors to obtain facilities related tobusiness enterprises and generally to improve the investmentregime of Antigua and Barbuda, and for incidental and con-nected purposes.

were a reference to the Authority in place of the Industrial Devel-opment Board.

(5) Any proceedings pending or in course immediately be-fore the coming into force of this Act to which the IndustrialDevelopment Board was a party shall be continued as if theAuthority was a party to those proceedings instead of the In-dustrial Development Board.

(6) On the coming into force of this Act all pensions beingpaid to former employees of the Industrial Development Boardshall be paid by the Authority and the amounts of those pen-sions shall be increased from time to time in all respects as thoughthose pensions were granted under the Pensions (Non-estab-lished Government Employees) Act, Cap 310.

Transitional pro-

visions.

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(7) On the coming into force of this Act the Authority shall—

(a) cause to be prepared the final accounts and a final

report in relation to the business of the Industrial

Development Board up to the date of the coming

into force of this Act, and sections 15, 16 and 17 of

the Industrial Development Board Act (Cap 215) shall

apply to those accounts and report despite the re-

peal of that Act; and

(b) cause to be transferred all the records of the Indus-

trial Development Board to them.

(8) The Minister may by regulations made under this Act pro-

vide for such further transitional and saving provisions to haveeffect in connection with the coming into operation of any provi-sion of this Act as is necessary or expedient.

(9) Regulations made under subsection (8) may be given ret-rospective operation to a day not earlier than the day this Actcomes into force.

(10) Subsections (8) and (9) shall expire one year after theycome into force.

29. The enactments specified in Schedule 3 are amended inthe manner indicated in that Schedule.

30. The Industrial Development Board Act (Cap 215) is re-pealed.

Section 2

SCHEDULE 1

INCENTIVES AND CONCESSIONS

1. For a new or established business which—

(a) has a capital investment of up to $1,000,000; or

(b) employs up to 26 persons who are citizens of, or lawfully resident in,

Antigua and Barbuda,

and in either case has at least one director or owner lawfully resident in Antigua and

(ii) Exemption from or reduction of payment of duty under the Cus-toms Duty Act, 1993 on the importation or purchase of vehiclesfor use in the operation of the business;

(iii) Reduction of property tax under the Property Tax Act, 2000 of upto 10% in respect of land and buildings (other than residentialpremises) used in the operation of the business;

(iv) Exemption from or reduction of payment of income tax undersection 5 of the Income Tax Act, Cap. 212, on the income of thebusiness, for a period of up to 3 years from the grant of the

concession, with an ability in respect of that period to carry

forward losses for periods of 1 year for each tax year;

(v) Reduction of stamp duty under the Non-citizens Land Holding

Regulation Act, Cap. 293, and of stamp duty payable by the

purchaser or transferee, and by the vendor or transferor, under

the heading “CONVEYANCE or TRANSFER ON SALE of any

property” in the Schedule to the Stamp Act, Cap 410, of up to10% in respect of land and buildings (other than residential pre-mises) used in the operation of the business; and

(vi) Exemption from or reduction of payment of tax under section 40of the Income Tax Act, Cap. 212, for a period of up to three yearsfrom the grant of the concession.

2. For a new or established business which—

(a) has a capital investment of over $1,000,000;

(b) employs over 26 persons who are citizens of, or lawfully resident in,Antigua and Barbuda; and

(c) has at least one director or owner lawfully resident in, Antigua andBarbuda,

the following incentives and concessions may be provided—

(i) Exemption from or reduction of payment of duty under the

Customs Duty Act, 1993 on the importation or purchase of

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raw materials, building materials, furniture, furnishings, fixtures,

fittings, appliances, tools, spare parts, plant, machinery and equip-

ment for use in the construction and operation of the business;

(ii) Exemption from or reduction of payment of duty under the Cus-

toms Duty Act, 1993 on the importation or purchase of vehiclesfor use in the operation of the business;

(iii) Reduction of property tax under the Property Tax Act, 2000 of upto 20% in respect of land and buildings (other than residentialpremises) used in the operation of the business;

(iv) Exemption from or reduction of payment of income tax under theIncome Tax Act, Cap. 212, on the income of the business, for aperiod of up to 5 years from the grant of the concession, with anability in respect of that period to carry forward losses for peri-ods of 2 years for each tax year;

(v) Reduction of stamp duty under the Non-citizens Land Holding

Regulation Act, Cap. 293, and of stamp duty payable by the

purchaser or transferee, and by the vendor or transferor, under

the heading “CONVEYANCE or TRANSFER ON SALE of any

property” in the Schedule to the Stamp Act, Cap 410, of up to

20% in respect of land and buildings (other than residential pre-

mises) used in the operation of the business; and

(vi) Exemption from or reduction of payment of tax under section 40

of the Income Tax Act, Cap. 212, for a period of up to 5 years from

the grant of the concession.

3. For a new or established business which—

(a) has a capital investment of over $10,000,000;

(b) employs over 51 persons who are citizens of, or lawfully resident in,

Antigua and Barbuda; and

(c) has at least one director or owner lawfully resident in, Antigua and

(iii) Reduction of property tax under the Property Tax Act, 2000 of up

to 75% in respect of land and buildings (other than residential

premises) used in the operation of the business;

(iv) Exemption from or reduction of payment of income tax under the

Income Tax Act, Cap. 212, on the income of the business, for a

period of up to 20 years from the grant of the concession, with an

ability in respect of that period to carry forward losses for peri-

ods of 7 years for each tax year;

(v) Reduction of stamp duty under the Non-citizens Land Holding

Regulation Act, Cap. 293, and of stamp duty payable by the

purchaser or transferee, and by the vendor or transferor, under

the heading “CONVEYANCE or TRANSFER ON SALE of any

property” in the Schedule to the Stamp Act, Cap 410, of up to

75% in respect of land and buildings (other than residential pre-

mises) used in the operation of the business; and

(vi) Exemption from or reduction of payment of tax under section 40

of the Income Tax Act, Cap. 212, for a period of up to 20 years

from the grant of the concession.

Section 6

SCHEDULE 2

CONSTITUTION AND PROCEEDINGS OF THE BOARD

The governing body of the Authority

1. (1) The Board shall consist of—

(a) two representatives of the Ministry of Finance, one being the Financial

Secretary, the other being a person to be nominated by the Minister;

(b) a representative of the Ministry of Tourism who shall be nominated by

the Minister of Tourism;

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(c) a representative of the Ministry of Foreign Affairs who shall be nomi-

nated by the Minister with responsibility for foreign affairs;

(d) a representative of the Ministry of Agriculture who shall be nominated

by the Minister of Agriculture;

(e) a representative of the Chamber of Industry and Commerce who shallbe nominated by the Chamber;

(f) a representative of the Antigua and Barbuda Industrial and Small En-

terprise Association who shall be nominated by the Association;

(g) a member of the National Economic and Social Council who shall benominated by the Council; and

(h) one person representing the private sector nominated by the Ministerafter consultation with such persons and organisations operating inthe private sector as appear to him to be appropriate.

(i) a representative from the trade unions nominated by the Minister after

consultation with the trade unions.

(2) The Minister shall appoint one of the persons referred to in subparagraph1(a) to be Chairman of the Authority and the other to be Deputy Chairman.

TENURE

2. The persons appointed under paragraph 1 who are not appointed by virtue of

their office shall be appointed in writing by the Minister for a term of two years and

may at the expiration of such term be reappointed by him for a further term not

exceeding two years in accordance with the nomination of the Minister or

organisation responsible for so doing.

RESIGNATION OF A MEMBER OF THE BOARD

3. A member of the Board who is not a member by virtue of his office may resignhis office at any time by letter addressed to the Chairman, and the resignation shalltake effect from the date that the letter is received by the Chairman.

APPOINTMENT OF BOARD MEMBERS TO BE PUBLISHED

IN THE GAZETTE

4. The Minister shall cause the names of the members of the Board as first

constituted and any changes in membership to be published in the Gazette.

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SEAL OF THE AUTHORITY

5. (1) The common seal of the Authority shall be affixed to all deeds, documentsand other instruments requiring the common seal of the Authority only after aresolution of the Board in each case authorising such action.

(2) The common seal of the Authority shall be authenticated by the signature ofthe Chairman or in his absence, the Deputy Chairman, and the Secretary of theAuthority.

(3) The common seal of the Authority shall be kept in the custody of the Secre-tary of the Authority.

MEETINGS OF THE BOARD

6. (1) The Board shall meet at least once every month and at such other times as

may be necessary or expedient for the transaction of its business.

(2) The quorum at meetings of the Board shall be six.

(3) Subject to subparagraph (4) each member of the Board shall be entitled to

one vote.

(4) The decisions of the Board shall be by a majority of votes, and in the event

the votes are equal, the chairman presiding at the meeting shall have an additional

casting vote.

(5) The Minister may appoint a person to act temporarily in the place of any

member of the Board who may be temporarily absent or unable to act.

(6) The Chairman may invite a Minister or his nominee to attend meetings of the

Board for consultation in respect of a proposed investment on which the advice of

his Ministry is considered essential or which might have a significant impact on the

sector of the economy which is the responsibility of his portfolio.

(7) The Chairman shall invite the Chairman of the Barbuda Council or his nomi-nee to attend meetings of the Board for consultation in respect of any proposed

investment for Barbuda.

(8) Subject to this Act, the Board may regulate its own procedure in respect to

meetings.

(9) Minutes of each meeting of the Board shall be recorded by the Secretary

and shall be confirmed by the Board at its next meeting and signed by the

Chairman.

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CONFLICT OF INTEREST

7. (1) If a member of the Board has any pecuniary interest, direct or indirect, in

any investment project in respect of which an application for a investment certifi-

cate has been made, or any contract, proposed contract, licence or other matter and

is present at a meeting of the board at which the application, contract, proposed

contract, licence or other matter is the subject of consideration, he shall at the

meeting and as soon as practicable after its commencement disclose the fact and

shall not take part in the consideration or discussion of the application, contract,

proposed contract, licence or other matter or vote on any question with respect to

it and shall be excluded from the meeting for the duration of the consideration,

discussion and voting procedure.

(2) If any person fails to comply with the provisions of subsection (1) he shall be

guilty of an offence and liable—

(a) on summary conviction to a fine not exceeding $20,000 or imprison-

ment for a term not exceeding 2 years, or both; or

(b) on conviction on indictment to a fine not exceeding $50,000 or impris-

onment for a term not exceeding 5 years, or both,

unless he proves that he did not know that the application, contract, proposed

contract, licence or other matter in which he had a pecuniary interest was the

subject of consideration at that meeting.

(3) A disclosure under subsection (1) shall be recorded in the minutes of the

Board.

(4) No act or proceeding of the Board shall be questioned on the ground that a

member of the Board has contravened this section.

PECUNIARY INTERESTS FOR THE PURPOSES OF PARAGRAPH 7

8. (1) For the purposes of paragraph 7, a member of the Board shall be treated,

subject to the following provisions of this paragraph and to paragraph 9, as having

• give effect to international obligations including treaties on the avoid-ance of double taxation;

• give effect to benefits granted as a result of agreements establishingcustoms unions, common markets, economic or monetary unions, or

similar arrangements.

PERSONNEL ISSUES

Subject to the provisions of the Antigua and Barbuda Labour Code, which in-cludes provisions relating to work permits and trade union recognition as well asstatutory conditions relating to employment in Antigua and Barbuda, a foreigninvestor may employ such number of foreign nationals in the management of abusiness enterprise as may be required.

Where foreign nationals are employed in a business enterprise pursuant to section(1) the foreign investor is required to ensure that employees who are citizens ofAntigua and Barbuda understudy the foreign nationals and that provision is madewhere appropriate in the enterprise for the transfer of skills to such employeeswithin a reasonable time.

TRANSFERS OF FUNDS

A foreign investor may without delay and on a non-discriminatory basis transferinto and out of Antigua and Barbuda, in a freely convertible currency, funds relat-ing to an investment, including funds for:

• repayment of foreign loans or interest on foreign loans;

• payment of dividends of non citizen shareholders, or to citizens ofAntigua and Barbuda who reside abroad;

• payment of royalties or fees in respect of an agreement for the transferof foreign technology;

• payments of emoluments and other benefits to foreign staff employedin Antigua and Barbuda or in connection with the enterprise;

• transfer abroad of profits or proceeds derived from the sale, disposal ortermination of the enterprise, or capital assets derived from the enter-

prise.

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However, the Government retains the right, under circumstances of exceptional or

serious balance of payments difficulties, to limit transfers of funds temporarily, on

a fair and non-discriminatory basis. The government also has the right to prevent a

ernment may stipulate that more time than normal not exceeding eight additional

weeks is required for the project proposal to be evaluated.

REGISTRATION

An investor must apply for investment registration under the Antigua and Barbuda

Investment Authority Act and obtain an investment certificate before his eligibility

for incentives and concessions can be considered.

DISPUTE RESOLUTION

Disputes between an investor and the Government regarding the eligibility of a

foreign investment for registration will be resolved first by means of negotiation

with a view to an amicable settlement. However, disputes which are not settled by

such negotiations may be submitted by either party to arbitration pursuant to any

of the following methods as may be agreed between the investor and the Govern-

ment:

(a) any arbitration laws in force;

(b) any specific arbitration procedures that may otherwise be agreed be-tween the investor and the Government;

(c) any bilateral or multilateral agreement or investment protection treatyto which the Government and the country of which the investor is acitizen are parties;

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(d) the Convention on the Settlement of Investment Disputes betweenStates and nationals of Other States of October 14th 1966 or any otherinternational agreement for the settlement of investment disputes towhich Antigua and Barbuda is a party;

Where no method or procedure for arbitration of an investment dispute is agreedbetween the Government and the investor, either party may apply to the High Courtfor a determination of any question arising from the dispute including the right ofthe parties to submit the dispute to arbitration in a given venue.

Where any interest in or right over property or investment is compulsorily takenpossession of or compulsorily acquired, an investor may apply to the High Courtfor a determination of:

(a) the legality of the taking of possession or compulsory acquisition;

(b) the nature, value and extent of the property interest or right so taken oracquired;

(c) the amount of compensation to be paid in respect of the taking oracquisition;

(d) the period within which compensation is to be paid; and

(e) the right to promptly repatriate such compensation without hindranceand without deduction of taxes after settlement of all outstanding

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